The 44 reports from 13 analysts offering long term price targets
for Petronet LNG Ltd. have an average target of 323.45. The consensus estimate
represents an upside of 33.99%
from the last price of 241.40.
Sharp recovery in LNG imports (up 12% y-o-y in November and continuous y-o-y growth since July) would help Petronet LNG (PLNG) to sustain high utilisation rate for its Dahej terminal. PLNG to also take 5% re-gas tariff hike for Dahej terminal from January 2021. We do not see any concern on volume outlook from the recent rise in spot LNG price as 98% of volume comes from long-term and tolling contracts. Kochi terminal utilisation to reach breakeven level of 25% by Q4FY2021. PLNG is well positioned to tap India's rising LNG consumption with 2mmt expansion at Dahej terminal, ramp-up of Kochi terminal utilisation, and focus to enter LNG retailing business....
Petronet LNG's volume demand reaching pre-COVID levels, improvement in operational efficiency, and commissioning of the Kochi-Mangalore pipeline will boost performance in upcoming quarters. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 327 based on 15.0x FY22E adj. EPS. Operational efficiency improved operating margins PLNG's Q2FY21 revenue fell 33.4% YoY to Rs. 6,236cr (+27.7% QoQ), on lower gas prices partially offset by increase in LNG volumes processed (1.6% YoY to 254 TBTUs)....
The overall volumes were 254 TBTU in Q2FY21. Volume at Dahej was higher, due to addition of nameplate capacity of 2.5 MMTPA and shut down of the Dabhol terminal during the monsoons. Given gradual capacity addition and increase in re-gasification margins, PLL is likely to benefit from the gas demand evolution in India. PLL is also poised to benefit from the uptick in gas demand and the setting up of small scale LNG stations which will consume 8-9 MMTPA of LNG. However, Q1FY21 was a low volume quarter, which have now...
Lowest tariffs, superb pipeline network and well-entrenched reach in the domestic LNG markets to help PLNG compete with new terminals. We increase our FY21E estimates by 9% to factor in strong H1 performance, delay in commissioning of the Kochi-Mangalore pipeline and make other...
We retain BUY with our DCF-based target price (TP) of Rs325 on (i) attractive risk-reward at 12.68x PE on Sept22E (ii) prospects of ramp-up in Kochi from 2HFY21 based on likely completion of the Kochi-Mangalore pipeline by early Dec'20 as per GAIL/PLNG guidance (iii) The management is building the B-B LNG business as auto fuel in partnership with CGD entities/OMCs, although details on pricing/margins and investments are under evaluation. During the concall, the management stated that it is in confidential talks with potential vendors on LNG sourcing, including deals linked to JFM benchmark spot price. PLNG also affirmed its commitment to protect shareholders' returns from any future...
Petronet LNG provides comfort on the business model and remains a structural story of India's increasing gas demand. With India continuing to be short of natural gas supply, Petronet LNG will benefit as the primary play on increasing usage of LNG. On the new project front, the management indicated the company is planning to set up an import terminal on the east coast. Post relaxations in lockdown, Petronet LNG's volume surpassed preCovid levels with the Dahej terminal operating at full capacity. However, additional capacity from new terminals on the west coast (Mundra, Dabhol) and lack of new investment opportunities will limit volume growth from...
Higher volumes were clocked in FY20, due to higher efficiency in operations and expansion of nameplate capacity at Dahej. Last few days of March '20, was affected due to nationwide lockdown, however normal volumes have bounced back and the Dahej terminal is running at a capacity utilization of close to 100% with industries starting up and higher usage of gas from Power and other industries as spot LNG prices are low. Capacity Utilization at Kochi is low and is expected to improve after the completion of the KochiMangalore pipeline by end of August'20. The capacity utilization of Kochi terminal after completion will reach around 30-35%, which will further boost...
Petronet LNG (PLNG) reported better-than-expected Q1FY2021 results as the decline of 11% y-o-y in its operating profit to Rs. 910 crore was much lower than our and street expectations of 20-22% y-o-y decline. It is attributable to higher-than-expected Dahej re-gas volume at 181 tbtu (versus estimate of 168 tbtu) and lower other expenses (29% y-o-y). Other expenses were lower as variable cost (such as power and fuel and repairs) declined with lower overall volumes. We highlight here that Q4FY2020 operating profit was impacted by Rs. 31 crore for inventory loss and Rs. 178 crore for forex losses. Kochi terminal volume at 9 TBTU (flat y-o-y; down 31% q-o-q) was in-line...
Kochi utilization to improve on new pipeline commissioning: PLNG's Kochi terminal is expected to see higher capacity utilization post completion of Kochi-Mangalore pipeline. The pipeline is expected to be commissioned in August. This will help increase utilization, going forward. We expect Kochi terminal capacity utilization level could reach to 30-35% in FY22E from current ~17%. We expect PLNG...
HG Infra: HG Infra reported revenue at Rs 3bn (7% miss). However, APAT was nearly 3x our estimate on better than expected EBITDA margin and lower interest expense. Labour availability has improved to 85% of the required labour force. While HG did not secure any orders during the quarter, it aims to win Rs 30-40bn during FY21. Order backlog is robust at Rs 68bn (3.1x FY20 revenue). Standalone net debt increased to Rs 2.7bn from Rs 2.5bn on Mar-20 as working capital nearly doubled to Rs 1.4bn from Rs 0.7bn on Mar-20. Realization of receivables from Rajasthan project key for reduction in debt. We maintain BUY on HG with a SOTP based target price of Rs 337/sh, valuing the EPC business at 10x FY22E EPS. Key risks: (1) slowdown in NHAI ordering and (2) delays in receipt of pending dues from the Rajasthan project. Petronet LNG: Our BUY recommendation on PLNG with a price target of INR 291 is premised on robust volume offtake in FY21/22E as (1) benign LNG prices will ensure high LNG imports, in turn allowing full utilisation at Dahej on its expanded capacity, (2) completion of the Kochi-Mangalore pipeline by 2HFY21 would subsequently raise utilisation at the Kochi terminal, and (3) healthy free cash flows of INR67bn over FY21E and FY22E cumulatively. 1Q EBITDA was 44% above estimates, led by an 18% beat on total volumes
Focus on Kochi ramp up and big leap LNG retailing We retain BUY with our DCF-based target price (TP) of Rs316 (up a tad) on (i) attractive risk-reward at 12.2x PE on FY22E (ii) prospects for ramp-up in Kochi from 2HFY21 based on likely completion of the Kochi-Mangalore pipeline by end-August as per PLNG guidance (iii) The management's big leap in B-B LNG business as auto fuel in partnership with CGD entities/OMCs, pending details on pricing/margins. We are tweaking FY21E/FY22E on increased Kochi regas margin assumptions and 5% annual escalation as per the management guidance. During the concall, the management said that it is in confidential...
Lowest tariffs, excellent pipeline network and well-entrenched reach in domestic LNG markets to help PLNG compete with new terminals. We leave our estimates for FY21-23E unchanged. Petronet LNG (PLNG) is a play on India's rising LNG imports supported by soft spot LNG prices. We like PLNG's business model given high earnings visibility. We see limited competition to PLNG's well-entrenched reach in the LNG business. Reiterate...
Petronet LNG's (PLNG) Q1FY20 EBITDA was in line at Rs 9bn (11% YoY), with low volumes (16% YoY) being compensated by higher EBITDA/ mmbtu at Rs 48 (+5.7% YoY).
Petronet LNG provides comfort on the business model and remains a structural story on India's increasing gas demand. With India continuing to be short of natural gas supply, Petronet LNG will benefit as the primary play on increasing usage of LNG. While volumes were impacted during the lockdown, currently Dahej terminal is operating at full capacity. On the new project front, the management indicated the company is planning to set up an import terminal on the east coast. Also, Petronet's deal with Tellurian to buy a stake and import LNG is under negotiation. At the CMP, Petronet LNG...
PLNG has received positive responses for its LT commitment of gas off-take (~1mmtpa) linked to spot prices; the companys board is deliberating on this, and a decision is expected within the next five to six months. PLNG is considering to set up an LNG terminal in Gopalpur (Odisha), connected to the JagdishpurHaldiaBokaroDhamra Pipeline (JHBDPL ~100km away); this would be the biggest beneficiary of new-age CGD gas demand in eastern India. This LNG project would strategically place PLNG (providing access to the westernsouthern eastern coasts), aiding the benefit of gas swapping as the CGD network expands in the country. The feasibility study for the project is complete, and the company is currently in the process of determining whether to set up a land-based terminal or floating (FSRU) terminal; the decision is expected in another three to four months.
